Case for Court??

What is the name of your state? Ohio

Not long ago my parents signed a contract with a company to have a house built on a piece of land. The company charged them an application fee, as well as a small amount of money as a downpayment on the property. They put a SOLD sign in the yard, and let my parents pick out everything for the home (ex: countertop tile, flooring etc.) My parents waited a while and then the company came back and told them that it had taken to long for them to file some sort of paperwork, and then charged my parents another application fee. They offered to roll all my parents debts into the loan with the house payment. My parents were weary, and consulted their attorney. He told them that he didnt even think that was a legal thing to do...so, my parents went in and spoke with the company building the home and told them that. Two days later, the same company that had been so nice to them, called and told them that they couldnt get them a loan for the house, were very rude, and that was the last my mother heard from them. They kept the SOLD sign on the property, and built a house there..even though my parents had signed a contract and put down a deposit on the land...A deposit which they didnt get back. About a week ago my mother called the company and asked why there was a house now on the land theyd signed the contract for when they had never even recieved the deposit back. The lady said she needed to speak to her boss and shed get back with my mom. Two days later, they called trying to get my parents to sign some sort of release...when they said theyd have to talk it over, the company sent the check in the mail. My mother hasnt cashed it, because she thinks that the company made a breach of contract...telling them they had the house, letting them pick things out, putting up a SOLD sign and even taking a deposit...Then telling my parents they couldnt have the loan because they were upset that my mom had gone to a lawyer about the "rolling debts into the loan" issue. Does my mother have a case for court here? Is there any actions that they can take since they were promised the house and land, but never got it..and didnt get the deposit back until threatened?
If someone could get back with me Id REALLY appreciate it.
[email]Sweetpea6497@aol.com[/email]

Although there are a few people here who may be able to help you understand the mechanics of your situation, I doubt anyone can give you specific information as to whether or not you have a case for anything (or your parents) without a thorough reading of the contract your parents signed.

My best advice would be to have your parents return to the attorney with all documents in-hand and ask for a face-to-face opinion.

[nextwife]

Sounds to me that, due to either income, credit, or downstroke, the lender wanted to cross collateralize the new construction with another property they owned? This IS done and not all that unusual. I have seen many situations iin which two properties were put on a mortgage to meet underwriting. The answer is simple- if you don't like their deal, don't take it. If the lender is requiring that a second property be placed on the loan and they do not wish to, they can walk from the deal or ask how much more down would be needed to leave the other property off.

AS to their prior accepted offer, it sounds as though the builder treated it as though it were released. Thusbuilder should be obligated to return the deposit. The offer WAS contingent upon financing,, right? If so, they were not approved for financing from what it seems you explained.

[JETX]

I agree with Hex. Their issue is very complex with contracts and offers to amend, so much so that the only REAL answers would have to come after a full and complete review of all the details. This is made even more confusing as it is 'third-party' related.

Please have your parents contact a local real estate attorney who can review all of the issues and advise them properly.

[HomeGuru]

And I agree with JETX.